Manufacturing

SAP Business One supports all your basic requirements for production activities by enabling you to accurately and effectively manage bills of materials (BOMs), production orders, and material requirements. The application simplifies definition and management of BOMs for production, assembly, and sales. For example, with a production bill of materials, you can readily document the type, quantity, and price of materials needed to manufacture the final products, as well as quantity availability. Once BOMs have been defined, production orders can be created and released based on them.

Component needs, costs, and materials availability are automatically added to your work orders, enforcing accurate allocation of raw materials to products and volume control. Production orders allow you to initiate and track the production process and effectively move the materials used in the process through your organization. For example, once a production order is released to the shop floor, SAP Business One can automatically issue transactions for components needed to produce the parts.

On the other hand, material requirements planning (MRP) functionality in SAP Business One allows you to plan your material requirements and maintain an optimum production plan for complex, multilevel production processes. It replaces informal, ad hoc production scheduling with a more structured process using data from various sources across your business to create an accurate picture of your production and supply chain. Sources of data include:

  • Bills of materials
  • Inventory data
  • Inputs from scheduled production and purchase orders
  • Demand inputs from actual and forecasted orders

Using the MRP wizard, you can specify timelines, stocks, and even data sources to be considered in planning. SAP Business One then takes this data, assembles it, and creates recommendations regarding your material needs – what you’ll need and how much and when you’ll need it. Once these recommendations are reviewed, the MRP functionality can automatically generate production and purchase orders needed to manufacture a final product in the quantity and time specified by the production schedule, taking into consideration all requirements for product components.